Please post any and all questions you would like to ask John (he can either answer them here, or we will bring them up at our weekly meetings!)
NEW QUESTIONS:
FOR JOHN:
MEETING MINUTES:
March 21th, 2012 Notes from Phone Conference:
Maria: sent to Tom (as of right now) and send to group by Midnight
Tom: will edit Maria's work first; Tom combine the two sections as needed
Nic: financials should be good, will send in a finished rough draft by Friday
Tara: finish financials, friday send J everything in one document, Send it the same time to john & nicole.
Questions for Nicole:
Friday work turned in by: Nic (6pm) Tom (6pm)
Check prices on normal cork tops and the glass ones.
What wine bottles it fits. (does it fit the cheaper one she talked about?)
Cost on oro bottle (or something similar?)
March 12th, 2012 Notes from Meeting with John:
Are you currently a member of The American Distilling Institute? No Do you have previous business venture? If so, how are/were they? Yes- Multiple. Some have done very very well, and others not so well. They have included military harness company, construction company for custom built houses, land development, an MRI center, and a medical center for outpatient operations. Can you accept returns from customers? Yes, but most returns will be from distributors, as they will notice mistakes more often then the customers. If you had your choice of Pot stills- from who & what would you order ? (If the family member could not provide it?)Hoga Stills has an all copper one that is 250gallons for $19,000
Who do you plan on ordering equipment from, or is there somewhere local that you can go to buy professional equipment? There is a local place called Agar Tanks in NW Portland that you should check out. Questions from Tara on Employment, Depreciation, any additional financial requests. Put into spreadsheets (changes in COGS, deprecation numbers and professional services used and requested.) Discussed change in COGS from 8.45 to hopefully down to 6 by reducing prices by buying in bulk, and where to get some materials locally that can reduce costs. Also discussed lowering equipment prices by buying used (wine and beer materials are the same when it comes to tanks and some of the process equipment). Winebiz.com He wants a gas fired pot still, no glycol unit necessary if we go with hoga. We need to check on the tower for vodka if hoga provides one or not in the $19,000 cost. Nicole did not make it but will be there next week so Group Discussed label and bottle: Need to ask Nicole about what bottles are cheaper, and what colors they come in. Also is buying in bulk cheaper? Goal to lower COGS price if possible. Finally came up with an idea for label using a "flower" and for this first bottle we would use Washington's State flower the costal.
We liked the curved wine bottle hopefully in clear with a pink or red film making it glow (see photo) with a
as the image label. On the back of the bottle we would like to see a "local recipe" as we broaden out to new years, seasons, we can explore using other state flowers, local state recipe's and such, or as we move into fruit, using the flowers of the fruit and a good recipe using it as well. We are still looking for a name. Goal for the group was to find a name by Sunday.
March 5th, 2012 Notes from Meeting with John & Class:
Nic- will be talking to competitors regarding operations, will send information regarding Competitors to Maria by Wednesday Tara- will review industry data, possibly visit a Vancouver liquor Store if not a local one. She will also review presentation zen. Maria- has new questions for John, will type those up, visit a liquor store and should watch The Beer Wars on Hulu. Tom- will edit his information to make the elevator statement shorter, the vision statement to 25 words, continue industry analysis research and will visit a liqour store.
Group should review: Universal Packaging's site and have questions for Nicole:http://www.unipack.ca/ local spirit festivals? a liquor store, and help find information for industry analysis. This week focus on research.
Nicole should be asked questions about what other microdistillieries are doing, and how the can help us make our mark with the bottle/label and packaging.
John is going to provide a basic COGS per bottle, and will send this later this week.
Marketing ideas:
Tours
Merchandising
Spirit Festivals (Product launching festivals) are there local ones like http://www.sfspiritscomp.com/
McMennimans
Resturant Private Labels
ADI (Microdistillers Institute: http://distilling.com/)
Look at Skinnygirl vodka
www.skinnygirlcocktails.com
Other money making ideas:
Contract with wineries to distill brandy (they give you juice, they can age it for you)
Selling mulch (grain) at farmers market, strategic alliance with local farmers (we give you mulch, you give us fruit??)
Math of Distilling:
16%=(1.060-.95)/7.4= 14.8% x .93
Need to know info:
Vodka= Still (93-95% ABV) = 190 Proof
Vodka sells at 80 Proof
For each batch you get 25% (bad) heads, 25% (used for flavor in next batch) tails, 50% heart (usable product)
26 gallons of fermentation = 2.2 gallons usable spirits at 93-95%, have to add water to get 80 proof so more like 5 gallons each production
IDEAL
250 gallons of fermentation = 30 gallons usable spirits at 93-95%, have to add water to get 80 proof so more like 60 gallons each production
There is 2.37 gallons per case (each case 12 bottles 750mL) so in 250 gallons you would get approximately 25 cases.
24 hour production 6 days a week (1 day maintenance)
more then one still if making things other then vodka
March 4th, 2012 Notes from meeting with John:
Vodka takes a 5 day turn around- 1 day making it, 4 day sit end up approximately 92%
Currently he is using a 26-gallon bucket that distills into 1+ gallons. Ideally he would be using a 250-gallon buck that distills into
State mandate it 80% proof (meaning he has to dilute with water)
He wants to sell out of production $12-14, but guessing final markup will be approximately $28-30.
Asians buy smaller bottles, so this may be a marketing strategy.
Women buy bottles/labels, so this may be a marketing strategy.
Is currently using a 1000sq ft warehouse, but really only using 250 of it for distillery and 250 for office. May not need much more in terms of space.
Business Operational Information: Does your company already have a name? Vancouver Distillery Works LLC What is the focus of the company? Value/Vision statements? Vodka, Coors/brandy What is the company’s mission statement? None as of now How big of an operation are you running now in terms of production & in terms of sales? Could be doing 3 cases (36 bottles) Not selling currently, just working on recipes How big are you looking to grow your business in terms of production or in terms of sales? Would like to be doing 500 cases for the first year, and hopefully up to 1000-second year. So approximately 40 a month. Do you have a timeline- or how long do you want to run this business? 5/10 year plan? Are you wanting to sell the recipe/business at some point in the future? Family business, wants to build it so that kids can take over. No plans on selling. Is there any advantage in having the warehouse in Vancouver, Washington? Wants to move downtown in the future to have a retail space/tasting bar. However, warehouse space is much cheaper. Vancouver is easier to sell as he doesn’t need a distributor’s license and can do tastings from the warehouse. Who will be the CEO and what is their background? John Bennett, CPA; Son in law, and son are currently helping. How many employees would you hope to have upon start of operations? He would like to hire 2 additional employees at some time a quarter time to part time office/accounting employee and a distiller. What do you see as a potential treat to the start up? Beside's funding. Getting into the distribution network, and making a name for themselves. Would like to stay local but need distributors license to sell in Oregon. How are you prepared to sell your product? Do you want to create your own distillery/brew house where there is a sales staff? Internet sales? Or do you want to distribute to other retail/restaurants for sales? Cannot sell online- would like to see it in restaurants (possibly making them private labels). In bars and local stores, would fit in well at “New Seasons”
Business Financial Information: Do you need additional funding? Not really, would rather do it themselves. We can look once we see final numbers on what would be the best option. How much Capital are you willing to invest? Guessing it is about 40/50k Will you be more interested in bank funding or private investors? Private Investors more then likely What are your biggest expenses, who are you selling to now if any? Wages: $68,264 Bottles: $2.00 w/ label for 750ml (we need to check prices for 375) John is going to provide us with a COGS per 375 and 750 bottle. Equipment: Pot Still w/ Vodka Tower, Mash Pot, Fermentation Tanks, Fruit Press, Pumps, Bottle Filler, Forklift Still can range from 150k-20k and is willing to look at used equipment. Materials: Grains, Malted Barley, Yeast, Enzymes, Chemicals, Fruits
Business Marketing Information: What do you think your direct competitors are (are you going for premium, cheap, organic, or just want to be a local brand?) What do you know about your potential competition? Northwest for women is our niche; Idaho/Wa/Or mircodistillers are our competition. Would love to see their bottle sitting next to Grey Goose (another wheat vodka) What is going to differentiate your product from what is currently on the market? Focusing on women How will your recipes standout from all the other distilleries out there? Wheat, NATURAL flavorings, local tastes What would you consider your competitive advantages? Focusing on women and local tastes Which of the elements below from does the company incorporate? -Something New. -Something Better -An Underserved or New Market. -New Delivery System or Distribution Channel.
NEW QUESTIONS:
FOR JOHN:
MEETING MINUTES:
March 21th, 2012 Notes from Phone Conference:
Maria: sent to Tom (as of right now) and send to group by Midnight
Tom: will edit Maria's work first; Tom combine the two sections as needed
Nic: financials should be good, will send in a finished rough draft by Friday
Tara: finish financials, friday send J everything in one document, Send it the same time to john & nicole.
Questions for Nicole:
Friday work turned in by: Nic (6pm) Tom (6pm)
Check prices on normal cork tops and the glass ones.
What wine bottles it fits. (does it fit the cheaper one she talked about?)
Cost on oro bottle (or something similar?)
March 12th, 2012 Notes from Meeting with John:
Are you currently a member of The American Distilling Institute? No
Do you have previous business venture? If so, how are/were they? Yes- Multiple. Some have done very very well, and others not so well. They have included military harness company, construction company for custom built houses, land development, an MRI center, and a medical center for outpatient operations.
Can you accept returns from customers? Yes, but most returns will be from distributors, as they will notice mistakes more often then the customers.
If you had your choice of Pot stills- from who & what would you order ? (If the family member could not provide it?)Hoga Stills has an all copper one that is 250gallons for $19,000
Who do you plan on ordering equipment from, or is there somewhere local that you can go to buy professional equipment? There is a local place called Agar Tanks in NW Portland that you should check out.
Questions from Tara on Employment, Depreciation, any additional financial requests. Put into spreadsheets (changes in COGS, deprecation numbers and professional services used and requested.)
Discussed change in COGS from 8.45 to hopefully down to 6 by reducing prices by buying in bulk, and where to get some materials locally that can reduce costs. Also discussed lowering equipment prices by buying used (wine and beer materials are the same when it comes to tanks and some of the process equipment). Winebiz.com
He wants a gas fired pot still, no glycol unit necessary if we go with hoga. We need to check on the tower for vodka if hoga provides one or not in the $19,000 cost.
Nicole did not make it but will be there next week so Group Discussed label and bottle: Need to ask Nicole about what bottles are cheaper, and what colors they come in. Also is buying in bulk cheaper? Goal to lower COGS price if possible.
Finally came up with an idea for label using a "flower" and for this first bottle we would use Washington's State flower the costal.
We liked the curved wine bottle hopefully in clear with a pink or red film making it glow (see photo)
with a
as the image label.
On the back of the bottle we would like to see a "local recipe" as we broaden out to new years, seasons, we can explore using other state flowers, local state recipe's and such, or as we move into fruit, using the flowers of the fruit and a good recipe using it as well. We are still looking for a name. Goal for the group was to find a name by Sunday.
March 5th, 2012 Notes from Meeting with John & Class:
Nic- will be talking to competitors regarding operations, will send information regarding Competitors to Maria by Wednesday
Tara- will review industry data, possibly visit a Vancouver liquor Store if not a local one. She will also review presentation zen.
Maria- has new questions for John, will type those up, visit a liquor store and should watch The Beer Wars on Hulu.
Tom- will edit his information to make the elevator statement shorter, the vision statement to 25 words, continue industry analysis research and will visit a liqour store.
Group should review: Universal Packaging's site and have questions for Nicole: http://www.unipack.ca/
local spirit festivals? a liquor store, and help find information for industry analysis. This week focus on research.
Nicole should be asked questions about what other microdistillieries are doing, and how the can help us make our mark with the bottle/label and packaging.
John is going to provide a basic COGS per bottle, and will send this later this week.
Marketing ideas:
Tours
Merchandising
Spirit Festivals (Product launching festivals) are there local ones like http://www.sfspiritscomp.com/
McMennimans
Resturant Private Labels
ADI (Microdistillers Institute: http://distilling.com/)
Look at Skinnygirl vodka
www.skinnygirlcocktails.com
Look at Scottish Whiskey Insitute Resarch article:
http://www.scientificsocieties.org/jib/papers/2011/G-2011-0218-1104.pdf
Look at IBI? not sure what Hootman meant!
Other money making ideas:
Contract with wineries to distill brandy (they give you juice, they can age it for you)
Selling mulch (grain) at farmers market, strategic alliance with local farmers (we give you mulch, you give us fruit??)
Math of Distilling:
16%=(1.060-.95)/7.4= 14.8% x .93
Need to know info:
Vodka= Still (93-95% ABV) = 190 Proof
Vodka sells at 80 Proof
For each batch you get 25% (bad) heads, 25% (used for flavor in next batch) tails, 50% heart (usable product)
26 gallons of fermentation = 2.2 gallons usable spirits at 93-95%, have to add water to get 80 proof so more like 5 gallons each production
IDEAL
250 gallons of fermentation = 30 gallons usable spirits at 93-95%, have to add water to get 80 proof so more like 60 gallons each production
There is 2.37 gallons per case (each case 12 bottles 750mL) so in 250 gallons you would get approximately 25 cases.
24 hour production 6 days a week (1 day maintenance)
more then one still if making things other then vodka
March 4th, 2012 Notes from meeting with John:
Vodka takes a 5 day turn around- 1 day making it, 4 day sit end up approximately 92%
Currently he is using a 26-gallon bucket that distills into 1+ gallons.
Ideally he would be using a 250-gallon buck that distills into
State mandate it 80% proof (meaning he has to dilute with water)
He wants to sell out of production $12-14, but guessing final markup will be approximately $28-30.
Asians buy smaller bottles, so this may be a marketing strategy.
Women buy bottles/labels, so this may be a marketing strategy.
Is currently using a 1000sq ft warehouse, but really only using 250 of it for distillery and 250 for office. May not need much more in terms of space.
Business Operational Information:
Does your company already have a name? Vancouver Distillery Works LLC
What is the focus of the company? Value/Vision statements? Vodka, Coors/brandy
What is the company’s mission statement? None as of now
How big of an operation are you running now in terms of production & in terms of sales? Could be doing 3 cases (36 bottles) Not selling currently, just working on recipes
How big are you looking to grow your business in terms of production or in terms of sales? Would like to be doing 500 cases for the first year, and hopefully up to 1000-second year. So approximately 40 a month.
Do you have a timeline- or how long do you want to run this business? 5/10 year plan? Are you wanting to sell the recipe/business at some point in the future? Family business, wants to build it so that kids can take over. No plans on selling.
Is there any advantage in having the warehouse in Vancouver, Washington? Wants to move downtown in the future to have a retail space/tasting bar. However, warehouse space is much cheaper. Vancouver is easier to sell as he doesn’t need a distributor’s license and can do tastings from the warehouse.
Who will be the CEO and what is their background?
John Bennett, CPA; Son in law, and son are currently helping.
How many employees would you hope to have upon start of operations? He would like to hire 2 additional employees at some time a quarter time to part time office/accounting employee and a distiller.
What do you see as a potential treat to the start up? Beside's funding. Getting into the distribution network, and making a name for themselves. Would like to stay local but need distributors license to sell in Oregon.
How are you prepared to sell your product? Do you want to create your own distillery/brew house where there is a sales staff? Internet sales? Or do you want to distribute to other retail/restaurants for sales? Cannot sell online- would like to see it in restaurants (possibly making them private labels). In bars and local stores, would fit in well at “New Seasons”
Business Financial Information:
Do you need additional funding? Not really, would rather do it themselves. We can look once we see final numbers on what would be the best option.
How much Capital are you willing to invest? Guessing it is about 40/50k
Will you be more interested in bank funding or private investors? Private Investors more then likely
What are your biggest expenses, who are you selling to now if any?
Wages: $68,264
Bottles: $2.00 w/ label for 750ml (we need to check prices for 375)
John is going to provide us with a COGS per 375 and 750 bottle.
Equipment: Pot Still w/ Vodka Tower, Mash Pot, Fermentation Tanks, Fruit Press, Pumps, Bottle Filler, Forklift
Still can range from 150k-20k and is willing to look at used equipment.
Materials: Grains, Malted Barley, Yeast, Enzymes, Chemicals, Fruits
Business Marketing Information:
What do you think your direct competitors are (are you going for premium, cheap, organic, or just want to be a local brand?) What do you know about your potential competition? Northwest for women is our niche; Idaho/Wa/Or mircodistillers are our competition. Would love to see their bottle sitting next to Grey Goose (another wheat vodka)
What is going to differentiate your product from what is currently on the market? Focusing on women
How will your recipes standout from all the other distilleries out there? Wheat, NATURAL flavorings, local tastes
What would you consider your competitive advantages? Focusing on women and local tastes
Which of the elements below from does the company incorporate? -Something New. -Something Better -An Underserved or New Market. -New Delivery System or Distribution Channel.